Cabinet Decision No. 107 of 2026: Enforcing Strict Timelines and Governance Under the UAE Anti-Commercial Fraud Law

In a major step to strengthen market integrity and consumer safety, the UAE Cabinet issued Cabinet Decision No. 107 of 2026, enacting the long-awaited Implementing Regulation to Federal Decree-Law No. 42 of 2023 on Combating Commercial Fraud. Repealing the previous regulatory regime under Cabinet Decision No. 11 of 2020, the new regulation establishes an operational framework with strict deadlines, unified state-wide coordination, and clear accountability for suppliers, distributors, and retailers across mainland UAE and its Free Zones.

Dual Jurisdiction: Federal Backstop & Inter-Emirate Oversight

While local competent authorities (such as the Economic Development Departments in each Emirate) remain the frontline enforcement agencies, Cabinet Decision No. 107 of 2026 expands the supervisory power of the Ministry of Economy and Tourism.

• 10-Day Local Inaction Rule: If a local authority fails to act within 10 working days of receiving notice of fraudulent, defective, or counterfeit goods, the Ministry is empowered to step in and handle the case directly.
• Federal Jurisdiction Thresholds: The Ministry assumes primary control if the local authority declines to act, if non-compliant goods are distributed across multiple Emirates, or if the goods pose severe public health or environmental risks.

Rapid-Response Timelines: The Mandatory Recall Clock

The defining feature of Cabinet Decision No. 107 of 2026 is its strict time limits once goods are determined to be non-compliant.

1. The 24-Hour Recall Clock

Upon receiving official notice, suppliers must immediately stop selling the goods and, within 24 hours, pull all inventory from warehouses and retail points. All downstream points of sale must also be notified within this 24-hour window to remove the stock immediately.

2. The 48-Hour Public Notice Standard

Suppliers must publish a bilingual (Arabic and English) recall notice within 48 hours measuring at least 15 cm × 15 cm (or digital equivalent). The notice must contain product specifications, origin details, refund instructions, and dedicated contact channels.

3. Government Intervention Backstop

If a supplier fails to remove the goods within 24 hours or cannot be contacted, authorities will execute the withdrawal within 48 hours at the supplier’s sole expense.

Extended Supply Chain Liability & Strict Penalties

Liability under the 2026 Regulation extends well beyond original manufacturers or importers. Distributors, resellers, and marketing intermediaries who knew or ought to have known based on their professional expertise that goods were fraudulent, defective, or counterfeit face severe administrative fines.

Heightened regulatory scrutiny applies to sensitive product categories:

• Pharmaceuticals & Medical Devices: Stricter inspection and testing procedures.
• Agricultural Products & Organic Foods: Zero tolerance for false organic certifications or adulteration.
• Misleading Advertising: Prohibition against misleading origin, quality, or environmental claims.

Product Disposal and Administrative Reconciliation

Options for Goods Disposal

• Re-Export: Goods may be returned to their country of origin within 30 days of seizure, provided no court-ordered destruction decision exists and re-export poses no environmental or safety hazards.
• Recycling & Alternative Use: Authorized under strict supervision by the Higher Committee or Competent Court, provided all counterfeit trademarks are completely removed.
• Destruction: Executed within 15 working days of a judicial judgment or Higher Committee order, using methods that prevent any re-entry into trade channels.

Settlement Controls

Violators may apply for an administrative settlement within 10 working days of penalty notification, provided:

1. The breach was caused by demonstrable error or negligence (not intentional bad faith);
2. The offender has no commercial fraud penalties in the preceding 12 months; and
3. All underlying causes of the violation are fully rectified and fees paid.